Bank Of The Ryukyus,limited · TSE:8399
Bank Of The Ryukyus,limited — FY2016 Earnings Presentation
31 slides from Bank Of The Ryukyus,limited's earnings presentation, May 2017
Slide 1: Bank of the Ryukyus Management Briefing for FY2016
Bank of the Ryukyus Management Briefing for FY2016 “Kakurenbo” (Hide and Seek), by Makoto Ariyama Winner of the 25th (fiscal 2016) Bingata Design Contest presented by the Bank of the Ryukyus
Slide 2: Overview of Okinawa Prefecture
■Overview of Okinawa Prefecture Favorable economic conditions in the prefecture are expected to continue. 1.07% (highest in Japan: 2007-2020 anticipated rate of Anticipated rate real economic growth (Japan Center for Economic of economic growth China: 1.3 billion people Research)) 3.0% (highest in J
Slide 3: Tourism (Visitors to Okinawa)
■Tourism (Visitors to Okinawa) Record-high visitor arrivals! Number of foreign tourists exceeded two million in 2016! Number of Visitors and Tourism Revenue Changes in Number of Cruise Ships Visiting Ports in Okinawa Prefecture (Thousands of (Billions of yen) (Times) Visitors from overseas (Left sca
Slide 4: Financial Industry Trends
■Financial Industry Trends Financial industry conditions remain severe in stark contrast to the positive prefectural economy 82 listed regional banks and financial groups BOJ adopts negative Decrease in marketable 11% decrease in FY 2016 interest rate policy securities–related profits consolidated n
Slide 5: Financial Summary (Non-Consolidated)
■Financial Summary (Non-Consolidated) Net income for the fiscal year remained at roughly the same level as last year （Billions of yen） FY2016 FY2015 Year-on-year change Ordinary revenue 41.1 +0.9 40.2 Business gross profit (a) 30.0 ▲1.7 31.7 Expenses (b) 23.6 +1.2 22.4 Real net business profit (c=a-
Slide 6: Financial Summary (Consolidated)
■Financial Summary (Consolidated) Revenue and profit increased if special factors, namely, extraordinary gains from turning OCS into subsidiary in the previous fiscal year, are excluded （Billions of yen） FY2016 FY2015 Year-on-year change Ordinary revenue 60.7 +0.8 59.9 Ordinary expenses 51.0 +1.2 49
Slide 7: Factors Behind the Change in Net Income
■Factors Behind the Change in Net Income Net income for the fiscal year remained at roughly the same level as last year despite a decrease in net interest income on loans and deposits and an increase in business expenses Changes in Net Income Factors Behind the Change in FY2016 Net Income （Billions
Slide 8: Changes in Loans
■Changes in Loans Loan interest decreased despite steady increases in lending to both individuals and businesses Changes in Loans Changes in Loans Interest Increase / Decrease Earnings yield factors Syndicated loans Balance factors Local public authorities and other (excluding syndicated loans) （Mil
Slide 9: Changes in Interest on Loans
■Changes in Interest on Loans Interest on loans decreased overall, with the exception of consumer loans Changes in Interest on Loans by Major Category Changes in General Business Loan Balance by Objectives of Fund (excluding Syndicated Loans, Residential Leasing and Real Estate) Others （Billions of
Slide 10: Corporate Business Strategy (Establishment of the Corporate Business Planning Department)
■Corporate Business Strategy (Establishment of the Corporate Business Planning Department) Amid poor prospects for expanding lending business, we seek to cultivate new business fields April 2017 Established Corporate Business Planning Department Corporate Business Promotion Group Business Succession
Slide 11: Corporate Business Strategy (Top-line and Skill Development Support)
■Corporate Business Strategy (Top-line and Skill Development Support) Support growth of enterprises through programs that help expand sales channels and cultivate entrepreneurial skills Fourth Business Forum on Okinawa’s Culinary and Scenic Appeal Ryugin Startup Program Ryugin Startup Program Demo D
Slide 12: Business Strategy: Individuals (Mortgage Loans)
■ Business Strategy: Individuals (Mortgage Loans) We have products unlike anything offered by other regional banks and designed to meet diverse needs First among Japanese regional banks “Sumairu-kun" residence purchase support loans Effective utilization of reduced mortgage loan tax! 0.5% fixed
Slide 13: Business Strategy: Individuals (Consumer Loans)
■ Business Strategy: Individuals (Consumer Loans) Increase speed, convenience and product appeal to meet customer demands Expand channel functions New products for customers outside Okinawa Product descriptions Direct Banking Center TEL Expand functions, increase staff and increase outbound calls WE
Slide 14: Trends in Deposits
■Trends in Deposits (including Negotiable Certificates of Deposit) Steady increase, hinging on individual and corporate savings Changes in Deposit Balance Changes in Deposit Yields Deposit yields Deposit yields (nationwide regional banks) (Billions of yen) Individuals Corporations Public funds 0.15%
Slide 15: Trends in Sales of Assets in Custody
■Trends in Sales of Assets in Custody Higher balance thanks to increase in sales of single-premium insurance which offset a decline in sales of JGBs and investment trusts Changes in Balance of Assets in Custody Changes in Sales of Assets in Custody (Billions of yen) Single-premium insurance Investme
Slide 16: Strategy for Assets in Custody
■Strategy for Assets in Custody Implement measures to support management of customer assets First among Japanese First among Japanese regional banks regional banks August 2016 October 2016 Add "Skype for Business" into tablet Start of "Skype Support" terminals distributed to sales branches *Consulta
Slide 17: Trends in Service Revenue
■Trends in Service Revenue Diversification of service revenue to expand earnings Changes in Service Revenue (excluding Creditor Group Insurance Premiums and Loan Guarantee Fees) Others ATM-related Assets in custody Domestic exchange and account transfers Service revenue (Millions of yen) 4,849 4,893
Slide 18: Expand Credit Card Merchant Services
■Expand Credit Card Merchant Services Leading the way among regional banks in Japan Start of "Ryugin Card Merchant Services" for both VISA and MasterCard international brands Background and Issues Ratio of credit card sales in the annual product ・Visitors to Okinawa increasing each year sales of the
Slide 19: Diversify Fee Business for Individuals
■Diversify Fee Business for Individuals Pioneering efforts among regional banks in Japan October 2015 Launched VISA Debit Card February 2017 Began ATM-based lottery sales Launched on February 13, 2017 More than Started Lottery Ticket 50,000 cards issued Sales at ATM Machines Immediate settlement w
Slide 20: Develop Branches that Make Customers Feel at Home
■Develop Branches that Make Customers Feel at Home List of renovated branches (FY2016) July 2016 Tabaru Branch Concepts October 2016 Chatan Branch Building branches that customers will want to Chatan Loan Center visit again January 2017 Wakasa Branch Branch layout designed to accommodate the
Slide 21: Trends in Securities Operations
■Trends in Securities Operations Higher earnings through diversification of portfolios despite a lower balance due to JGB redemptions Changes in Balance of Securities Changes in Securities-Related Payments JGBs Bonds Interest and dividends Class 5 bonds Local government bonds Other (foreign bonds, e
Slide 22: Expenses
■Expenses Expenses increased due to prior investment in equipment and systems Changes in Expenses Changes in Property Cost Breakdown Others Deposit insurance premiums Personnel expenses SG&A expenses Services outsourcing fee Outsourcing fees (Billions of yen) Non-personnel expenses Equipment and sys
Slide 23: Group Strategy
■Group Strategy Aiming to become a comprehensive financial services group providing new value to customers Ryukyu Leasing Co., Ltd. April 2014, made consolidated subsidiary July 2017, made wholly owned subsidiary (Tentative) Ryugin Hosho Co., Ltd. Okinawa Credit Service Co., Ltd. April 2015, mad
Slide 24: Human Resource Development and System Reform
■Human Resource Development and System Reform Nurture human resources capable of providing diverse value that touches the "hearts of customers” Changes in Numbers of Professionally Qualified Personnel FP1 Class Corporate finance personnel and Small/Medium Enterprise Consultants specified sector cons
Slide 25: Local Contribution Activities
■Local Contribution Activities Proactive involvement in local society Human resource Sports development promotion support activities Supporting RYUKYU GOLDEN KINGS, FC Run Ryugin Kids School program and provide funds RYUKYU and RYUKYU CORAZON to The Children's Cafeteria for food purchases Local Pass
Slide 26: Cost of Credit/Disclosed Claims
■Cost of Credit/Disclosed Claims Downward trend in cost of credit and disclosed claims under favorable economic conditions Changes in Net Cost of Credit Changes in Disclosed Claims General provision for credit losses Specific allowance for credit losses Loan amortization Other amounts Claims in bank
Slide 27: Capital Adequacy Ratio
■Capital Adequacy Ratio Secured consolidated capital adequacy ratio in 9% range, even as risk assets increased Changes in Capital Ratio Changes in Risk Assets Regulatory capital Consolidated Capital ratio (Right scale) (Billions of yen) Non-Consolidated Capital ratio (Right scale) (Billions of yen)
Slide 28: Performance Forecast for FY2017
■Performance Forecast for FY2017 Anticipate lower revenue and profit, on both non-consolidated and consolidated bases, principally due to a decrease in parent results. ＜Non-Consolidated＞ (Billions of yen) FY2017 FY2016 (Forecast) Year-on-year change (Actual results) Ordinary revenue 38.0 ▲3.1 41.1 O
Slide 29: Revenue Outlook in Medium-Term Business Plan
■Revenue Outlook in Medium-Term Business Plan Strengthen service revenues and strive to achieve stable earnings Changes in Real Net Business Profit (Billions of yen) Medium-term management plan 10 9.1 9.3 8.5 7.8 8 6.3 6.5 5.6 5.8 6 4 2 End Mar.'13 End Mar.'14 End Mar.'15 End Mar.'16 End Mar.'17 End
Slide 30: Fi HK FR AF
Fi HK FR AF 29
Slide 31: About This Presentation
■About This Presentation All enquiries regarding this presentation should be addressed to: Bank of the Ryukyus,Limited General Planning Department Telephone: +81-98-860-3787 Fax: +81-98-862-3672 E-mail: ryugin@ryugin.co.jp The information in this presentation is on a non-consolidated basis unless ot